Friday, August 12, 2022

Earthquake insurance coverage protection within the highest danger areas of Missouri drops to a historic low of 11.4 %

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The Missouri Division of Commerce and Insurance coverage (DCI) has issued a brand new Earthquake Insurance coverage Market Report that reveals earthquake protection within the highest danger areas of the New Madrid fault area of the state has hit historic lows. Within the six-county New Madrid area of the state, the proportion of residences with earthquake protection has declined by an astonishing 49 share factors between 2000 and 2021, from 60.2 to 11.4 %.

The price of earthquake insurance coverage has risen by 816 % since 2000 within the area. And whereas the worth and lack of availability of insurance coverage are probably main components for the drop in protection, one other potential motive is that some shoppers imagine they have already got protection.

Latest shopper analysis carried out by the Missouri Division of Commerce and Insurance coverage, the Heart for Insurance coverage Coverage and Analysis on the Nationwide Affiliation of Insurance coverage Commissioners (NAIC), and the College of Missouri’s Catastrophe and Neighborhood Disaster Heart has proven that many householders within the highest danger areas of the New Madrid Seismic Zone don’t notice their present normal householders insurance coverage insurance policies don’t cowl injury attributable to earthquakes.

“The southeastern quadrant of Missouri that features the New Madrid Seismic Zone experiences round 200 small earthquakes annually,” stated Chlora Lindley-Myers, director of the Missouri Division of Commerce and Insurance coverage. “But, lots of the most at-risk shoppers residing in that space don’t appear to know their householders or renters insurance coverage insurance policies don’t cowl earthquake injury.”

The DCI runs an earthquake insurance coverage schooling and consciousness marketing campaign annually to supply data and information to these within the area who have to make selections about protection and plan to organize and recuperate ought to a big earthquake occasion happen. 

“Regardless of our efforts, the protection fee for earthquakes in essentially the most at-risk areas of Missouri has fallen to a document low, and the hole between the insured and the uninsured continues to develop,” stated Lindley-Myers. “To battle this drawback, we’re taking the extra step of bringing key individuals collectively to work on an answer.”

The DCI is internet hosting the primary Central U.S. Earthquake Insurance coverage Summit in St. Louis, MO, on Might 23-25. For the primary time, this Summit will convey collectively the insurance coverage trade, regulators, authorities officers, and emergency administration professionals to forge new concepts to start “closing the hole.” Main innovators and visionaries will begin conversations to unravel this crucial difficulty for shoppers residing close to the New Madrid Seismic Zone.

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